Transportation Companies and Accidents: Are You Protected?

The growth of Uber and Lyft has raised the question of protection from accidents while ridesharing in Tacoma, WA. This also applies to transportation companies like ours, as many people inquire about insurance for rideshare accidents and whether they or their loved ones will enjoy accident injury protection. Here is a brief discussion on how insurance matters are handled when your hired transportation has an accident.

In general: Yes

The question is less, “Are you protected?” and more, “Whose insurance applies?” In general, you are protected if your rideshare or professional driver has an accident. The real question is, whose insurance coverage pays the damages?

People who drive for a company are covered by that company’s auto insurance. It will fund your medical bills and fix the vehicle. In some companies, if the driver is at fault, there may be a drug test or other evaluation to see if it was a rare mistake or an impairment. Most transportation companies pride themselves on being drug-free workplaces for a reason. It ensures that their drivers are safe.

When you hitch a ride with a driver from Uber or Lyft, it is different. Both companies consider their drivers independent contractors, so they originally did not provide liability insurance. That depended on the driver’s personal insurance, and if you were injured in an accident, your recovery would depend on their limits.

Now, both Uber and Lyft provide third-party liability coverage that pays up to $1 million for personal injuries and property damage per accident. But that only kicks in after the driver’s personal auto insurance is exhausted. So, if the driver is at fault, you are covered by the driver’s insurance as well as this additional policy.

If another driver is at fault, you will pursue their insurance. The easiest way to do this is to file a claim with your own insurance company so your medical bills are paid faster. They will recover the amount from the other insurance company through a subrogation claim that keeps you out of the loop.

Assigning liability

If your injuries are especially serious, you may have to file a lawsuit to collect damages. You may file this against your transportation company or rideshare driver or against the other driver, if your hired driver was not at fault.

If you hired a transportation company, your lawsuit will most likely name the company and the driver. Grounds may include negligence in hiring against the company, and negligence while driving for the employee. If the driver was under the influence, they are assumed liable under a strict liability standard.

Uber and Lyft hire contractors, not employees. Therefore, liability is assigned to the driver who picked you up. In most cases, their personal car insurance covers damages and you will not have to pursue the Uber or Lyft policy.

Around the Sound invests in its employees and vehicles to ensure you have reliable transportation throughout the Puget Sound area. Our efforts mean you rarely have to worry about insurance for rideshare accidents in Tacoma, WA and whether you will receive protection from accidents while ridesharing with our company. Book online today if you require medical, airport, event or cruise terminal transportation services!

Categorised in: Transportation Service

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